LCK 3.92% 24.5¢ leigh creek energy limited

I was looking at the buy vs sell chart this morning and noted...

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    I was looking at the buy vs sell chart this morning and noted that we currently have 67 buyers (2.3mill volume) vs 116 sellers (4.8mill volume).

    78% of all volume in the selling range is above 35cents (3.7mill) and 48% of all buying volume is 27cents and above.


    But this brings me back to the fundamentals of the stock which some of us can sometimes lose sight of.


    * Our Maiden 2P reserve certification of 1,153PJ which is a monster and when it was first announced we were all gob smacked! Let me convey that we should all STILL be gob smacked as it unequivocally represents one of Eastern Australia's largest undeveloped and uncontracted reserves. This is a 2 billion dollar bankable asset and only HALF of what the rest of the potential is.

    * LCK's announced 2P reserve is the same size as BHP Billiton and bigger then Exxon, Senex, Beach Energy, Cooper Energy and Central Petroleum.

    * The LCEP has been independently certified as suitable for a commercial project with a peak flow rate of 8,913sm3/h. WELL DONE!

    * The gas heating value of 6.6MJ/Sm3 is identified as one of the HIGHEST for air-blown syngas achieved anywhere in the WOLRD.

    * LCK have demonstrated pre-commercial success that comprise of all the key elements required for syngas including Methane, Hydrogen, Carbon Monoxcide and Nitrogen

    * LCK produced syngas at over 1 million cubic feet per day and most importantly in a ENVIRONMENTALLY RESPONSIBLE MANNER.

    * The decommissioning of the PCD which will be completed by end of May will significantly reduce the level of cash burn and a Heads of agreement has been made with African Carbon Energy for negotiation of one or several Lease agreements, Sale and purchase agreement and Service Agreement. FANTASTIC!

    * The geology of the Coalfield is suitable for low environmental risk ISG operation with no acquifiers in the targeted coal seams and overburden.

    * ISG offers a cheap way to produce syngas when compared with the usual method of cracking natural gas.

    * LCK have experienced personnel particularly with the engineering and project team.

    * LCK have key shareholders and alliances including CITIC, CNEG and CCCC.

    * LCK have the INFRASTRUCTURE to support fertilisers that are a bulk commodity with the railway linking Leigh Creek to a number of South Australian ports including those at Whyalla and Adelaide

    * The infrastructure is in addition to grid power, communications infrastructure, tarred road access and the nearby towns of Leigh Creek and Copley with offer range of facilities expected in rural communities

    * LCK has gone through a RIGOROUS permitting process with oversight by relevant authorities with which LCK have a STRONG relationship

    Now lets look at some of the weaknesses, threats and risks:

    * this is largely commercially unproven as there are few examples globally

    * 1P reserves are not booked

    * public perception which is overshadowed by Linc trials and QLD ban

    * Political - whether the ALP government would continue its support in April 2022

    * Permitting - whether the commercial operation may not be permitted

    * Funding

    * this is a stock for long term traders and not day traders...so patience is required.

    * we have a lot of newbies who get scared when not knowing all the facts, listen to people who are negative and not presenting compelling arguments for and against


    Where to now?


    * LCK has multiple commercialisation paths mainly for the sale of synthetic natural gas into the Australian East Coast market and /or using the gas to manufacture ammocia-based fertiliser products, both of which have significant POSITIVE ECONOMIC RETURNS.


    * LCK can enter both markets SIMULTANEOUSLY.

    * LCK is ACTIVELY in discussions with financial and strategic partners to EXECUTE these strategies.

    * As quoted from Phil Stevely: LCK is working through NEGOTIATIONS with over a DOZEN gas purchasers who are SEEKING a material amount of gas supply, WHILE we progress the dual path and scoping aspects of a COMPELLING fertilizer strategy.

    Personally, I am in for the long haul and though not ignorant of some of the risks, I strongly believe that they are FAR from insurmountable and will be overcome.

    This is also one of the most UNDERATED stocks on the ASX at the moment with not a lot of people aware of its potential and upside.

    This is not investment advice, however I encourage all of you to DO YOUR RESEARCH and maybe, just maybe, you will be as convinced as I am that this is a ROCKET.

    Good luck all.


 
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Last
24.5¢
Change
-0.010(3.92%)
Mkt cap ! $134.2M
Open High Low Value Volume
25.5¢ 25.5¢ 24.5¢ $118.1K 471.9K

Buyers (Bids)

No. Vol. Price($)
5 260442 24.5¢
 

Sellers (Offers)

Price($) Vol. No.
25.0¢ 3547 1
View Market Depth
Last update - 16.10pm 17/06/2019 (20 minute delay) ?
(live)
Last
25.0¢
  Change
-0.010 ( 1.96 %)
Open High Low Volume
25.5¢ 25.5¢ 24.5¢ 77133
Last updated 15.57pm 17/06/2019 (live) ?
LCK (ASX) Chart
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